India looking for ways to enhance Rs 11.21 lakh crore FY26 capex outlay to boost consumption: Report

The Finance Ministry has begun consultations with various ministries and departments to explore new avenues for capital expenditure (capex) in the upcoming fiscal year, ET Now reported citing sources.

According to the report, the government is examining ways to increase capex beyond the Rs 11.21 lakh crore set for FY26. The move is aimed at spurring demand in the economy and building on the momentum of infrastructure-led growth.

Sectors such as Railways, Road Transport & Highways, Ports, and Shipbuilding have been the major drivers of capex so far.

The government is also said to be assessing the potential capacity of key sectors and considering expanding the capex push into new areas such as urban infrastructure and sunrise industries.

“The Finance Ministry is satisfied with the current pace of spending,” sources told ET Now, adding that infrastructure activities are expected to gain momentum after the monsoon season.

It is to be noted that the capex in the first quarter of FY26 already stands at 25% of the budgeted target.